American Home Products is a company with virtually no debt. Students are asked to analyze the company’s debt policy and a recommendation to the CEO. It is likely that adding debt to the capital structure would create some value for shareholders, the CEO firmly against borrowing.

American Home Products is a company with virtually no debt. Students are asked to analyze the company’s debt policy and a recommendation to the CEO. It is likely that adding debt to the capital structure would create some value for shareholders, the CEO firmly against borrowing
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David W. Mullins Jr.
Source: HBS Premier Case Collection
7 pages.
Release Date: 18, März 1983. Prod #: 283065-PDF-ENG
American Home Products Corp. HBR case solution